A few important mortgage rates moved higher today. The average interest rates for both 15-year fixed and 30-year fixed mortgages both climbed higher. For variable rates, the 5/1 adjustable-rate mortgage also notched up. Although mortgage rates are always changing, they’re lower than they’ve been in years. Because of this, right now is an excellent time for prospective home buyers to get a fixed rate. But as always, make sure to first consider your personal goals and circumstances before buying a house, and shop around for a lender who can best meet your needs.

Here are mortgage rates for different styles of loan

30-year fixed-rate mortgages

For a 30-year, fixed-rate mortgage, the average rate you’ll pay is 3.06%, which is an increase of 3 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most common loan term. A 30-year fixed rate mortgage will usually have a smaller monthly payment than a 15-year one — but often a higher interest rate. You won’t be able to pay off your house as quickly and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to minimize your monthly payment.

15-year fixed-rate mortgages

The average rate for a 15-year fixed mortgage is 2.36%, which is an increase of 4 basis points compared to a week ago. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a higher monthly payment. But a 15-year loan will usually be the better deal, if you’re able to afford the monthly payments. You’ll usually get a lower interest rate, and you’ll pay less interest in total because you’re paying off your mortgage much quicker.

5/1 adjustable-rate mortgages

A 5/1 ARM has an average rate of 3.08%, a climb of 4 basis points from the same time last week. You’ll typically get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 ARM in the first five years of the mortgage. However, since the rate changes with the market rate, you could end up paying more after that time, as described in the terms of your loan. Because of this, an ARM might be a good option if you plan to sell or refinance your house before the rate changes. Otherwise, shifts in the market means your interest rate may be much higher once the rate adjusts.

Mortgage rate trends

We use data collected by Bankrate, which is owned by the same parent company as CNET, to track rates changes over time. This table summarizes the average rates offered by lenders across the US:

Today’s mortgage interest rates

Rates accurate as of Aug. 27, 2021.

How to find the best mortgage rates

To find a personalized mortgage rate, talk to your local mortgage broker or use an online mortgage service. Make sure to think about your current finances and your goals when searching for a mortgage. Factors that affect the interest rate you might get include your credit score, down payment, loan-to-value ratio and debt-to-income ratio. Having a good credit score, a larger down payment, a low DTI, a low LTV or any combination of those factors can help you get a lower interest rate. 

Besides the mortgage rate, other costs including closing costs, fees, discount points and taxes might also factor into the cost of your home. Make sure you talk to several different lenders — like local and national banks, credit unions and online lenders — and comparison-shop to find the best mortgage loan for you.

What’s the best loan term?

When picking a mortgage, you should consider the loan term, or payment schedule. The most common loan terms are 15 years and 30 years, although 10-, 20- and 40-year mortgages also exist. Another important distinction is between fixed- and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are stable for the life of the loan. For adjustable-rate mortgages, interest rates are set for a certain number of years (most frequently five, seven or 10 years), then the rate adjusts annually based on the market interest rate.

When choosing between a fixed- and an adjustable-rate mortgage, you should take into consideration how long you plan to live in your house. Fixed-rate mortgages might be a better fit if you plan on staying in a home for a while. Fixed-rate mortgages offer greater stability over time in comparison to adjustable-rate mortgages, but adjustable-rate mortgages may offer lower interest rates upfront. If you don’t have plans to keep your new home for more than three to 10 years, however, an adjustable-rate mortgage might give you a better deal. The best loan term is entirely dependent on an individual’s situation and goals, so make sure to consider what’s important to you when choosing a mortgage.